If MF Global is anything to go by and the shit was to hit the fan, then how safe do you think your stocks and bonds are? A little known fact is the Fed owns them through a body called the DTCC (Depository Trust and Clearing Corporation ). You simply are the beneficiary of them and not the owner.

This is one of those mind blowing pieces of information that shows there is nothing that is not owned by the Federal Reserve.  A little known company – Depository Trust and Clearing Corporation – DTCC is the one entity/corporation in the world that holds all stocks and bonds traded for brokers.  They handle every stock/bond transaction world wide.  Not just that, but every stock/bond that people think they own, they are not the owners of them.  The stocks and bonds are not in their names in fact, the broker puts them in a fictitious name which the DTCC owns.   The DTCC is listed as the actual owner of the stock and bond and those who have purchased them are strictly the beneficiary of said stocks and bonds.

You may be thinking… well being beneficiary is just as good as being the stated owner…. WRONG!
Being beneficiary of the stocks and bonds purchased may be fine when all things are going well, but what happens when things start going nuts and banks have some real problems (ie: Greece default and banks exposure to it, via derivatives)?

Do you understand how Wall Street is protected over all customers by what has happened with MF Global?

How could that have happened, how could such obvious injustice have been done on every level?  How come not one single level of government from Congressional, Judicial and Administrative will not hold a Wall Street Commodities broker accountable to stealing the customers money out of their personal accounts?  How come not one single regulatory committee (CFTC) or government entity (FBI, DHS, etc) are not making MF Global accountable for theft directly out of people’s personal accounts?

Well, once you read the information below, you will understand why MF Global is able to get away with it.  I now understand it.  Because all the commodity contracts and gold and silver people thought they owned, they did not.  They were strictly beneficiaries of it as long as the government/Fed Reserve allowed them to be.  But once it came down to MF Global falling apart the “real” owners kept all monies and gold and silver.

It all makes sense to me now and all the pieces of the puzzle have come together in why a broker is able to steal people’s money out of their accounts.

And further reading

The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer’s name. The assets must be held in the name of DTC’s holding company, CEDE & Co. That’s how DTC has more than $19 trillion dollars of assets in trust… or is it really in “trust” if the private Federal Reserve System is technically holding it in their “unknown” entity’s name? Obviously, if stock and bond certificates you’ve purchased aren’t in your name, then the “holder” (the Federal Reserve System) could theoretically refuse to surrender them back to you under a “national emergency” according to the Trading with the Enemy Act (as amended). Is this the collateral being held by the private Federal Reserve System to pay off the national debt owed to them by our federal government, first initiated by Lincoln’s debt bonds of 1864?

Simply put, the Depository Trust Company absolutely controls every paper asset transaction in the United States as well as the majority of overseas transactions, and they now physically hold (as of April 1999) 99% of all stock and bond book-entrys in their street name, not the actual owner’s names. If you have stock or bond certificates in your name buried in your back yard or under your mattress, we suggest you keep them there. If not, it might be very wise to cancel your brokerage account and power of attorney status, re-register the stocks and bonds in your name (if you still can), and keep them hidden where only you know their location. Otherwise, you have absolutely no control over them (see Part II of our exclusive research report on the DTC for more information on beneficial ownership status). However, getting a stock or bond certificate these days is not so easy if possible at all.

DTCC owned by Federal Reserve.

DTCC settled nearly US$1.66 quadrillion in securities transactions.